Sales of DAB digital Radios top five million… Digital Radio Development Board

Sales of DAB digital Radios top five million…

Digital Radio Development BoardUpdate, 14th June 2007

BBC National Radio Stations

and…

http://www.bbc.co.uk/fivelive/

http://www.bbc.co.uk/fivelive/

http://audioandmusic.gateway.bbc.co.uk/departments/rmi/stats/6music.shtml

http://audioandmusic.gateway.bbc.co.uk/departments/rmi/stats/1xtra.shtml

http://audioandmusic.gateway.bbc.co.uk/departments/rmi/stats/radio2.shtml

http://www.bbc.co.uk/radio1/

Total awareness Digital Radio (Prompted with DAB logos)

67.0%65.8%64.7%64.9%66.4%63.0%63.3%

60.6%62.9%61.4%

58.6%55.2%

54.4%

47.1%44.1%

41.3%39.8%38.3%

Q4 02* Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07

Source: PBTS/Brand Tracker; *2 months only

Top 12 marketing campaign in December

Awareness of DAB digital radio has now increased to 67%, +1.2ppts on last quarter.

Top 40 marketing campaign in December

4,7254,615

2,961

1,532

547163

4,826

0

1,000

2,000

3,000

4,000

5,000

Up

to D

ec 0

2

Jan-

03

Feb

/Mar

03

Apr

/May

03

Jun/

Jul 0

3

Aug

/Sep

03

Oct

/Nov

03

Dec

03/J

an 0

4

Feb

/Mar

04

Apr

/May

04

Jun/

Jul 0

4

Aug

/Sep

04

Oct

/Nov

04

Dec

04/

Jan

05

Feb

/Mar

05

Apr

/May

05

Jun/

Jul 0

5

Aug

/Sep

05

Oct

/Nov

05

Dec

-05

Jan-

06

Feb

-06

Mar

-06

Apr

-06

May

-06

Jun-

06

Jul-0

6

Aug

-06

Sep

-06

Oct

-06

Nov

-06

Dec

-06

Jan-

07

Feb

-07

Mar

-07

Apr

-07

To

tal s

old

to

da

te (

00

0s

)

Source: GfK

Sales of DAB Digital Radio

DAB radio sales rose to 4.9m at the end of April 2007, 1.8m DAB radio’s were sold in the last year.

DAB sales volume grew by 16%, whilst analogue sales have slumped by 21% (y-o-y volume sales April).

*May 07 DRDB update

4,917

Source: RAJAR, Q1 20076-month weight, based on BBC Local Radio transmission

areas; DAB Digital Radio is not currently available in the Channel Islands

DAB in UK households: Summary of regional performance (relative to UK average)

DAB in UK households: Summary of regional performance (relative to UK average)

• 18% of adults in the UK have a DAB set in their home.

• DAB is most prominent in south east English households.

• Many of the ‘red’ areas are below average in large part owing to lack of reception. For instance, there are no National Commercial services on DAB in Northern Ireland, whilst much of Wales away from the main population centres has no DAB coverage.

Top 3 areas:-

• Southern Counties (Surrey/Sussex) (25.4%)

• Berkshire (25.3%)

• Wiltshire (24.3%)

Bottom 3 areas:-

• N Ireland (5.3%)• Cumbria (6.8%)• Wales (12.3%)

Medium (Index 85-110 of the average reach)

High (Index>110)

Low (Index < 85)

London 22.2%

Leeds/Bradford15.7%

WM17.2%

Scotland13.8%

Manchester 17.0%Merseyside 20.1%

6

• 28.7m adults (58%) now either own a DAB Digital Radio or listen to the radio via Digital TV or the Internet. This is an increase of 3.3m, compared with this time last year.

• 9.7m adults now claim to own a DAB set (20%), 3 million more than last year. DAB sales also climbed up to 4.9m by the end of April 2007.

• 12.1m adults say they sometimes listen online. This is a 5.6 million increase in 4 years.

• Over 20 million adults now claim to have listened to the radio via the television – 2 million more than a year ago. 54% (11.2m) of them use TV at least once a week for Radio.

• Ownership of portable MP players now stands at 13.6m (27%) an increase of 1.7 million on last quarter. The average age of an MP3 Player owner is 35.

• A rise of half million this quarter for those who use their myp3 player to listen to podcasts, which now stands at 2.5 million adults (5%). That’s 18.4% of MP3 owners. The average age remain at 30 years.

• The competition for share of voice across the different platforms is becoming intense. It is too early to tell which will increase or decrease or which have found a level.

Summary

7Source: RAJAR, Q2 07

BBC Radio 1Xtra

Weekly Reach (000’s)

% Share of all 1Xtra Listening by Platform

BBC Radio 1Xtra weekly total reach for Q2 is 473,000. DTV is the key digital platform for 1Xtra. 1Xtra % share is higher on DTV

than on DAB and almost as high online as DAB..

473

115162

47

0

200

400

600

ANY DIGITAL DAB Digital TV Internet

42.4%

25.5%

27.2% 5.0%

0.2

0.9

2.5

0.8

0

2

4

All DAB DTV Internet

% Share on each Platform

1.7%

21.1%

2.6%

7%

1.5%

66.1%

AM/FM

DAB Digital Radio

DTV

Internet

Unspecified- All

Unspecified- Digital only

% Share of all Radio Listening by Platform


BBC Radio 5 Live Sports Extra


% Share of all Sports Extra Listening by Platform

Radio 5 Live Sports Extra weekly total reach for Q2 is 866,000. DAB Digital Radio is the leading digital platform for 5 Live Sports Extra but DTV and Online .

866

176 194

70

0

200

400

600

800


48.8%

26.9%

19.6%

4.6%

0.3

1.1

2.1

0.8

0

2

4



1.7%

21.1%

2.6%

7%

1.5%

66.1%

AM/FM

DAB Digital Radio

DTV

Internet

Unspecified- All




BBC Radio 6 Music


% Share of all 6 Music Listening by Platform

BBC 6 Music weekly total reach for Q2 is 471,000. DAB Digital Radio is the key digital platform for 6 Music. DTV and Internet still significant.

471

235

100 81

0

200

400

600


30.6%

50.2%

6.9%

12.3%

0.3

2.0

0.8

2.3

0

2

4



1.7%

21.1%

2.6%

7%

1.5%

66.1%

AM/FM

DAB Digital Radio

DTV

Internet

Unspecified- All




BBC Radio 7


% Share of all BBC 7 Listening by Platform

BBC Radio 7 weekly total reach for Q2 is 738,000. BBC7 biggest DAB audience of the Digital Stations and the oldest demographic

738

394

166111

0

200

400

600

800


32%

45.5%

12.1%

10.3%

0.4

2.5

1.8

2.6

0

2

4



1.7%

21.1%

2.6%

7%

1.5%

66.1%

AM/FM

DAB Digital Radio

DTV

Internet

Unspecified- All




DAB Digital Radio Listening

1587 1541

959 892

394245 235 176 115 48

0200400600800

1000120014001600

Rad

io 4

Rad

io 2

5 LI

VE

Rad

io 1

BBC7

Rad

io 3

6 M

usic

5 LI

VE

SPO

RTS

EXTR

A 1Xtr

a

Asi

an N

etw

ork


DAB Listening Hrs- % Share By Station Groups

Radio 4 and Radio 2 account for more than half of BBC DAB listening, not surprising when the age profile for this platform is skewed to mature audiences.

BBC Radio share of listening on DAB (60%) is higher than its overall radio share (54%).

10.2m now claim to own a DAB Digital Radio in their home ( 20.3%).

8.8% 9.7%

28.3%

2.5%

25.5%

12.6%

1.4%

4.2%

3.4%

1.8%

Asian Network , 0.3

1.8%

5.3%

17.3%

21.5%

54.8%

National Commercial Local Commercial

BBC Network BBC Local Other

Radio 1

Radio 2

Radio 3

Radio 4

Radio 5 LIVE

5 LIVE SPORTS

EXTRA

6 Music

1Xtra

BBC7

Asian Network

BBC Local Radio

BBC DAB Listening Hrs- % Share By Station

12

% Profile of Weekly radio listeners via Mobile

49 51

34 37

29

44

5347

61

27

12

33

Men Women 15-34 35-54 Over 55 Ave Age

Mobile Phone Owners Listen via Mobile Phone

• According to RAJAR, 75% of the adult population own a mobile phone (37 million) and nearly 2 million of them claim to listen to the radio via a mobile phone at least once a week.

• The average age of someone who regularly listens to the radio via their mobile phone is 33 (compared to 44 for mobile phone owners overall). 61% of those that regularly listen to the radio via their mobile are under the age of 35.

Profile of mobile phone owners and those that listen via their phones

Source: RAJAR, Q1 07

% Adults (15+) ever listen to radio via mobile phone

1.8%2.0%

2.4%

3.2%

3.7%4.0%

4.5% 4.6%

5.2% 5.1%

5.8% 5.7%6.1%

6.3% 6.4%

7.0% 7.1%

7.8%8.0%

8.9%

Q3 20

02

Q4 20

02

Q1 20

03

Q2 20

03

Q3 20

03

Q4 20

03

Q1 20

04

Q2 20

04

Q3 20

04

Q4 20

04

Q1 20

05

Q2 20

05

Q3 20

05

Q4 20

05

Q1 20

06

Q2 20

06

Q3 20

06

Q4 20

06

Q1 20

07

Q2 20

07

The number of mobile phone owners (aged 15+) who claim to have listened to the radio via a mobile phone has risen 27% year on year to 8.9%.

Over a quarter of 15-24-year-old mobile phone owners (1.8 million) say they have listened to the radio in this way, a rise of 25% year on year. (21.7% in Q2, 2006 vs 27.2% in Q2 07).


DAB Digital Radio: Who buys them?

• ¼ of the respondents who have heard of DAB, claimed to have either bought a DAB digital radio set for themselves or for their home;

– Male (55%)

– Upmarket (nearly half are AB)

– Majority are aged 45years+

A few questions were posted onto the Pulse to understand who buys DAB Digital Radios…

What Do they like about DAB Digital Radios?

Sound quality

Range/choice of stations

Accessing BBC7Ease of tuning

“The fact that I can access more stations than with a conventional radio, plus the reception quality is usually far better (aside

from the odd "burbling"!)” Female, 46 years old

Source: DAB Digital Radio, Pulse May 2006

What Do they dislike about DAB

Digital Radios?

Delay compared to analogue radio Cost of a DAB digital Radio Set

Reception

“Delayed by a second or so - very disconcerting when two radios are on in

the house, one DAB, one standard.”Male, 47 years old

Portable DAB’s- can ‘eat’ the batteries

Changes in volume when switching to other stations

DAB Digital Radio: Who doesn’t buy them?

• 61% of those who have heard of DAB, claimed they haven’t bought a DAB Digital Radio;

– Nearly even split of males versus females (51%: 49%)

– More mainstream (46% C1C2)

– 38% are aged 25-44 years

DAB Digital Radio: Features

• 69% who listen via a DAB digital Radio set have never recorded live radio via the set

• 63% who listen via a DAB digital Radio, have never paused/or rewound live radio

• Just over 3/4s said their DAB digital Radio set doesn’t play mp3’s via an SD Card slot

Price widely cited as the biggest barrier, especially amongst the younger focus groups

• DAB Radio: many still not aware/interested in current offer…

Total

I've never heard of DAB / don't know what it is 23%

I've heard of DAB radio but am not interested 22%

I'll be interested in DAB if the radios become cheaper 21%

I'm hoping to get a DAB radio soon 17%

I've already got a DAB radio 11%

% Agree

67

64

28

32

24

35

0 10 20 30 40 50 60 70

Advert on Radio

Advert on TV

DJ recommendations on radio

TV Programmes

Friends/relatives/colleagues

Hearing song on radio

% agreeing

How to people discover what music to buy?

Radio remains the main source for discovering new music

21

2.3

8.1

34.6 45.6

9.4

BBC Network BBC Local Local commercial National commercial Other

1.3

13.9

24.1 53.2

7.6

• BBC Radio is stronger in DAB owning homes than than non DAB homes.

• The analogue-only universe (those who have never listened to radio via DTV or the Internet, and do not own a DAB Digital Radio) is now 5.7m.

Share of listening


BBC Radio Share by platform

Analogue only (don’t own DAB, never used

DTV or Net for Radio)(5.7m)

1.8

10.7

31.4

10.7

45.4

All adults 15+(49.8m)

DAB Set in Home(9.7m)

Market Share %

Total BBC = 56.0% Total BBC = 55.0% Total BBC = 60.8%

22

Market Share %

Share of listening

1.7

14.0

33.4

44.3

6.6

BBC Network BBC Local Local commercial National commercial Other

2.9

11.8

27.1 52.7

5.5

Weekly listeners via DTV(11.2m)

Weekly listeners via Internet(6.7m)

Total BBC = 50.9% Total BBC = 58.3%

• The number of weekly listeners via DTV has increased by a million, year on year.

• BBC stations have increased share in DTV homes to 50.9%. BBC share has also increased among listeners via the Internet to 58.3%( +5.7% points y.o.y)

• BBC Network Radio’s share of listening amongst people listening weekly via the Internet, more than matches the UK average.

BBC Radio Share by platform

All adults 15+(49.8m)


1.8

10.7

31.445.4

10.7

Total BBC = 56.0%

Documents

Sales of DAB digital Radios top five million… Digital Radio Development Board